Characteristics of retailer
1.Retailer is the last point of FMCG channel .
In
FMCG distribution channel, retailer is the
last point . From this point
products goes to consumer’s hand for their end use. Consumer comes for their day do day purchase according
their requirement.
2.Business to consumer.
This is the business to consumer
point, all the product purchased by the consumer are generally for non
commercial.
3.Interaction with end user.
Consumer visits physically in FMCG retail outlet, hence
retailer can interact with consumer. Retailer can understand consumer demand,
their choice, purchasing trend etc.
4.Point of promotion.
Consumer comes to retail point for
their purchase, hence this is the best
promotion point for FMCG industry. Using publicity material , display, merchandising can attract
consumer.
5.Personal contact with end user.
Retailer normally use personal
contact with consumer , majority of the consumer are well known to the
shopkeeper. He knows about consumer’s family background. Consumer’s
earning source, number of
earning member in the family etc.
6.Variety of goods.
Variety of goods is important feature of a retailer.
Retailer need to keep different category, different brands, different product
etc. Because consumer taste keeps changing and retailer need to service all
types of consumer.
7. Sells on MRP.
This character of a retailer
differentiate him from a wholesaler . In
general retailer sells on MRP and individual unit. For some special consumer ,
discount can be offered , but majority of the consumer are charged on MRP.
8. Link between ultimate consume and distributor/Wholesaler .
It is the link point between distributor/wholesaler and ultimate consumer. Retailer understands consumer behavior and gives
feedback to upper channel. Maximum FMCG company collects feedback from retail
point.
9. Ready to sell.
Retailer keeps stock for ready to sell position. In a competitive market
, consumer cannot wait for a retailer to supply him a product, consumer will move to nearby shop .
10. Monthly purchase system.
In semi urban
or rural area , some consumer purchase on monthly basis. Throughout the
month consumer purchase continuously and makes payment in one shot at the end
of the month. As these are credit
based consumer , retailer can push new product very easily .
11.Easy replacement of product .
In retail shop , replacement of product is very easy. If any consumer
not satisfied with a particular product , it can be replaced on the spot. No
fixed day or time for replacement or exchange.
For a single product retailer never
breaks good will of the shop.
12. Treats every individual as a consumer.
Retailer considers every individual as consumer. As we know, all of us
need FMCG product , hence in retail business every individual is a consumer in
FMCG retail industry. From an infant to
a senior citizen, all are consumer .
13. Breaking bulk into small.
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| FMCG Consumer |
Normally to reduce logistic
cost, manufacturer ships large quantity
in carton . Retailer breaks these carton
into small quantity and sell individual pieces. This process is convenient for
consumer and the manufacturer.
14. Merchandising .
Retailer merchandise different types of product at their own cost. Retailer keeps separate stock according to
MRP, category, SKU etc. So that consumer
can find easily. It helps retailer also,
while giving to consumer.
15. Brand awareness.
Retailer is
guarantor for any new product . Retailer helps consumer while purchasing any
new product. Also manufacturer are benefitted with this. Consumers are not
aware of any new product or it’s quality, retailer takes ownership of that
product and promotes to the consumer.
16. Lower transaction value.
In
retail shop, average transaction value is lower than any other partner in the
distribution channel. As it is a
frequent purchase category , consumer does multi transaction in a month and
hence average transaction value is less.
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